2005年-世界发展银行全球_Leasing_in_Development___Lessons____________from_Emerging_Economies_78页_728kb

Summary of Leasing in Development: Lessons from Emerging Economies

Core Content

Leasing in Development: Lessons from Emerging Economies is a manual published by the International Finance Corporation (IFC) in 2005. It provides guidance on the development of leasing in emerging economies, focusing on the role of IFC, the legal and regulatory framework, accounting and taxation issues, and the benefits of leasing for various stakeholders. The document is based on IFC’s technical assistance (TA) projects and aims to help leasing practitioners understand the local characteristics, risks, and opportunities in leasing development.

Main Points

What is Leasing?

Leasing is a financial arrangement where a lessor provides an asset to a lessee for a specified period in return for payments. It separates legal ownership from economic use. Leasing is a medium-term financial instrument used for machinery, equipment, vehicles, and properties. It can be classified as either finance lease or operating lease.

• Finance Lease: Transfers substantially all risks and rewards of ownership to the lessee. The lessee typically has the option to purchase the asset at the end of the lease. The economic substance is closer to a purchase financing arrangement than a rental.
• Operating Lease: Involves short-term rental of assets, with the lessor retaining economic ownership and responsibility for maintenance and insurance.

Differences between Finance and Operating Leases

Finance Lease	Operating Lease
Risks and rewards of ownership transferred to lessee	Risks and rewards remain with the lessor
Lessee may acquire ownership at the end of the lease	Lease term is usually shorter than asset's useful life
Minimum lease payments exceed the fair value of the asset	Present value of lease payments is less than full asset price
Lessee has the option to purchase the asset at a lower price	Asset may be rented out after lease term
Asset is specialized and only the lessee can use it	Asset is typically not specialized

Key Differences between Leasing and Loans

From the lessee’s perspective, the main difference between a lease and a loan is ownership:

• In a loan, the asset belongs to the borrower.
• In a lease, the asset belongs to the lessor.

Both involve similar elements like interest repayment, risk of default, and access to capital, but leasing offers more flexibility and risk allocation, especially for SMEs.

Why Develop Leasing?

Leasing offers several advantages:

• It provides access to finance for SMEs that lack significant collateral or credit history.
• It helps increase domestic investment and supports economic growth and job creation.
• It allows risk allocation to those best able to bear it.
• It is particularly useful in weak business environments where secured lenders may not have priority in case of default.

Key Stakeholders and Their Objectives

Stakeholder	Objectives	How Leasing Helps
Government	Domestic production, industrial diversification, capital investment, SME development, infrastructure improvements	Leasing supports local manufacturing, reduces reliance on imports, diversifies capital sources, and promotes SME growth and infrastructure development.
Lessors (including banks)	Risk management, market development, product diversification, customer base expansion	Leasing allows for greater control over assets, reduces transaction costs, and provides an opportunity to expand their business.
Lessees/SMEs	Access to finance, equipment, and production assets, ability to plan, timeliness, flexibility, and negotiability	Leasing requires less collateral, offers competitive financing costs, and allows for asset modernization and better cash flow management.
Equipment Manufacturers	Expanded market base, increased purchase options	Leasing provides a new mechanism for sales, reduces the burden on inexperienced buyers, and increases demand for their products.
Legal and Accounting Professionals	Compliance, tax planning, systems development	They assist lessors in ensuring legal compliance and optimizing tax benefits.
Investors	Increased investment opportunities, financial sector development	Leasing improves the investment climate, reduces risks, and increases financial sector sophistication.

IFC's Role in Leasing Development

IFC plays a significant role in leasing development through its technical assistance (TA) projects. These projects aim to:

• Develop the leasing sector to increase domestic access to finance and investment flow.
• Help financial institutions in emerging economies improve their risk management and credit systems.
• Promote market development and product diversification.
• Encourage non-bank lessors to enter the market, thereby increasing competition and efficiency in the financial sector.

Key Policy Issues

The manual emphasizes the importance of policy frameworks that support leasing development. These include:

• Legislation and regulation that clearly define leasing and distinguish it from other financial instruments.
• Accounting standards that reflect the economic substance of leasing rather than just legal form.
• Tax treatment that encourages leasing by reducing the tax burden on lessors and lessees.
• Legal certainty and creditor rights that support the viability of leasing transactions.

Conclusion

The document serves as a comprehensive guide for stakeholders in leasing development, especially in emerging economies. It highlights the importance of leasing in promoting economic growth, supporting SMEs, and improving the financial sector. IFC's role is to bridge the gap in leasing development and to provide technical assistance to ensure the viability and sustainability of leasing markets.